1. MARKET THEATRE FOUNDATION
DEPARTMENT OF ARTS AND CULTURE
9/12/2018
MARKET THEATRE FOUNDATION
ACTING DIRECTOR-GENERAL: ARTS AND CULTURE
DATE: 04/05/2017

2. PRESENTATION OUTLINE Background Income and Expenditure trends
Performance Overview
Audit Outcome
Selected Audit Findings
Governance
Alignment of MTF and DAC Goals
Other matters: Windybrow Theatre
Closure

3. BACKGROUND Market Theatre Foundation is a schedule 3A public entity.
The Foundation was established in terms of the Cultural Institutions Act, 1998 (Act No. 118 of 1998).
The Foundation receives institutional transfers from the Department to finance its operations and address its Infrastructure needs.

4. INCOME AND EXPENDITURE TRENDS
ITEM
2013/14
2014/15
2015/16
2016/17
(31 December 2016)
R’000
Income
62,681
85,521
95,895
17,037
Government Grant
43,185
69,694
73,422
10,605
Own Income
19,496
15,827
22,473
6,432
Expenditure
(47,274)
(46,362)
(54,252)
(17,440)
Surplus/Deficit
15,407
39,159
41 643
(403)

5. PERFORMANCE OVERVIEW

6. THREE YEAR PERFORMANCE OVERVIEW
PROGRESS
2013/14
2014/15
2015/16
2016/17
(31 December 2016)
Achieved
75%
80%
68%
66%
Not achieved
25%
20%
32%
34%

7. AUDIT OUTCOMES
2012/13
2013/14
2014/15
2015/16
Unqualified with findings

8. SELECTED AUDIT FINDINGS
Inadequate compliance with legislation pertaining to Irregular Expenditure.
Lack of accurate or complete performance reports which are supported by verification sources.

9. GOVERNANCE GOVERANCE STRUCTURES Council
The Council of the Market Theatre Foundation is fully constituted as at 31 December 2016.
Management
The Market Theatre Foundation has Chief Executive Officer and the Chief Financial Officer in place.

10. GOVERNANCE… MEETING FREQUENCY AND ATTENDANCE 2013/14 2014/15 2015/16
2016/17
Number of Council members 9 8
Number of Council meetings 4 6 5
Number of Council committee meetings 7
Attendance rate of Council meetings
81%
73%
84%
93%
Number of Audit Committee meetings
Number of Management meetings 10 11
Number of Staff meetings 12

11. ALIGNMENT OF MTF AND DAC GOALS
DAC STRATEGIC GOALS
DAC STRATEGIC OBJECTIVES
MTF STRATEGIC OBJECTIVES
KEY OUTPUTS
An integrated and inclusive society
To lead coordinate and implement social cohesion programme
To identify, develop, host and produce performing art productions to progressively advance the cultural wellbeing of all South Africans
20 productions staged.
audience attending.
1100 visitors to exhibitions.
1 publication produced.
A transformed, and productive ACH sector
To develop, protect and promote the cultural and creative sector
To promote the activities of the MTF in order to promote and enhance the brand of the MTF within South Africa
11 stakeholder newsletters.
200 newspaper adverts.
5.5 million publicity value.

12. ALIGNMENT OF MTF AND DAC GOALS
DAC STRATEGIC GOALS
DAC STRATEGIC OBJECTIVES
MTF STRATEGIC OBJECTIVES
KEY OUTPUTS
A professional and capacitated ACH sector
To build human resource capacity and promote excellence
To identify, develop and contract individuals so as to increase the number of professionals within South Africa
100 directors, actors, designers and technical personnel identified for development and/or empowerment.
To train and develop interns, students and community theatre practitioners
20 students enrolled for drama course.

13. ALIGNMENT OF MTF AND DAC GOALS…
DAC STRATEGIC GOALS
DAC STRATEGIC OBJECTIVES
MTF STRATEGIC OBJECTIVES
KEY OUTPUTS
A professional and capacitated ACH sector
To build human resource capacity and promote excellence
To empower students, individual participants in photography
20 individuals registered in the structured training initiatives such as Advanced Programme in Photography, Photojournalism and Documentary Photography Programmes.
65% of individuals successfully completed various training initiatives mentioned above.

14. OTHER MATTERS: WINDYBROW THEATRE

15. OPERATIONAL CHALLENGES
Since 2013, the Department had been inundated with the complaints of ongoing infighting between the Council and the Executive Management of the Windybrow Theatre.
The Council and the management disagreed on how the affairs of the entity should be managed. The infighting between the Council and management compromised the operations of the institution.
The Department made several attempts to resolve the conflict without success.
As a measure of last resort, a decision was taken by the Department to dissolve the Council of the then Windybrow Theatre. The Council of the Market Theatre Foundation was appointed as an Accounting Authority of the entity.

16. APPROVAL OF AMALGAMATION
The Minister approved that the Windybrow Theatre be amalgamated into the Market Theatre Foundation to form a new organisation.
A Joint Operations Committee (JOC) was formulated to oversee the process of integrating the Windybrow Theatre into the Market Theatre Foundation.
National Treasury and Portfolio Committee on Arts and Culture were informed of the above process.
A due diligence report was shared with both the National Treasury and Portfolio Committee.
National Treasury directed that the amalgamation must take place on or before 1 April 2016 so that the amalgamation can be aligned with the new financial year and National Treasury budget processes.

17. AMALGAMATION: PROGRESS TO DATE…
The Department prepared the necessary notice in the form of a gazette.
The notice was approved by the Minister of Arts and Culture on 2 March 2016.
The gazette was published on 18 March 2016.
The National Treasury confirmed the delisting of Windybrow Theatre as a schedule 3A public entity in terms of the Public Finance Management Act on 2 February 2017.

18. IMPLICATIONS OF AMALGAMATION
Amalgamation implies the consolidation of the following into one:
Council;
Audit Committee;
Other Council subcommittees;
Management;
Staff members;
Strategic and Annual Performance Plans;
Annual and quarterly reports;
Budget allocation;
Assets and Liabilities; and
MTEC & ENE databases.
Procurement Plans and Policies.

19. DEPARTMENT OF ARTS AND CULTURE
9/12/2018
THANK YOU